False reports of Cash App bankruptcy spread online

"Man CNN just said Cash App went bankrupt and any funds you had in your account would have to be awarded to you through bankruptcy court," says a September 7, 2023 Facebook post.

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Screenshot of a Facebook post taken September 12, 2023

Similar claims circulated elsewhere on Facebook and X, formerly known as Twitter. But they are false.

"CNN did not report that," said network spokeswoman Emily Kuhn in a September 12, 2023 email.

AFP found no reporting on live or archived versions of CNN's website suggesting the mobile payment service or its parent company Block Inc. has filed for bankruptcy. Keyword searches did not surface any other credible news articles about the company's downfall.

The Facebook user who shared the rumor later implied it was fabricated.

"Lord help us. 300 shares, y'all didn't even check the info, just straight believed anything you read on the net," says a September 7 follow-up post.

The claims may stem from the fact that Cash App experienced a system outage September 7, leaving customers unable to access their accounts or conduct transactions.

But the issue was resolved the next day and "all pending payments have been completed," according to a September 12 incident report (archived here).

The US Consumer Financial Protection Bureau has warned customers against storing money with services such as Cash App, PayPal and Venmo long term, as they may not be protected by federal deposit insurance (archived here).

Cash App says on its website that balances of up to $250,000 are insured by the Federal Deposit Insurance Corporation via a partnership with Wells Fargo Bank, but only if a user holds the company's debit card or an adult sponsors an account for a minor (archived here).